Convenience foods firm Greencore has reported a 27% increase in pro forma revenue in the fourth quarter of its financial year, driven by the revival of the food-to-go segment and new business wins.
Compared to the corresponding period in 2019, the group said that revenue was up 1%.
In its food-to-go business revenue was up 37% in the quarter (-2% compared to Q4 2019), while other convenience categories rose by 8% (+10% compared to Q4 2019).
In the preceding quarter, Greencore reported a 53.1% year-on-year revenue increase, it said in July.
Underlying Cash Generation
“We are pleased with the further improvement in our business in the fourth quarter, in particular the increase in demand across the business and our strong underlying cash generation," commented chief executive Patrick Coveney.
The group said that it also made 'good progress' on its sustainability objectives in the quarter, including the launch of the first fully recyclable, plastic-free sandwich skillet trials for customers.
In terms of the group's full-year performance, pro forma revenue was up 6% compared to the previous year, and down 9% compared to full-year 2019. Its core food-to-go business saw a 9% rise in revenue compared to last year, but was 16% lower than in 2019.
'Encouraging' Progress
Looking ahead, Greencore said that it was 'encouraged' by the progress it saw in the final quarter of 2021, adding that while the British food industry continues to face supply chain and labour challenges, it is 'working closely with customers and suppliers' to mitigate the impact of these.
It also noted that it is 'engaging intensively' with customers to recover input cost and other inflation.
"None of our progress would have been possible without the energy and dedication of our teams and colleagues who, as throughout the Covid pandemic, continue to do a fantastic job," said Coveney.
"Greencore has a strong position in the dynamic UK convenience food market and, looking forward, we remain confident in our medium-term prospects.”
© 2021 European Supermarket Magazine. Article by Stephen Wynne-Jones. For more Private Label news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.
